Iran's waning influence over the Strait of Hormuz
Reports indicate that Iran is beginning to lose its influence over the Strait of Hormuz, the vital waterway it once largely controlled. This comes amid increasing oil shipments passing under the protection of the U.S. Navy through a "dark crossing" method that reduces Iran’s ability to monitor the ships. Oil flows through the strait rose to approximately 13.1 million barrels per day last week, compared to 17.1 million before the war, with shipments from the Middle East returning to 98% of their pre-war levels. This reflects a decline in Iranian control and a shift in the dynamics of how oil transit is managed in the region. Despite global stocks decreasing by about two billion barrels during the war, the market endured price increases by utilizing alternative routes and boosting production from outside the Middle East, amid ongoing tensions over control of the Strait of Hormuz.
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